July 28, 2006

Feed additives to experience strong growth in South-east asia

Rising meat demand would result in increased production of animal feed which in turn would promote the uptake of feed additives across South-east Asia, according to Frost & Sullivan, a research company.

Non-antibiotic growth promoters and feed additives that offer cost benefits and have reduced environmental impact would experience strong growth, the company said.

The company estimates that the South-east Asian feed additives market, which earned revenues of US$284.3 million in 2005, could reach revenues of US$474.8 million by 2012.

The future of the animal feed additives market in South-east Asia would be in the non-antibiotic growth promoters market segment, said Frost & Sullivan research analyst Li Pheng Ooi. In addition, additives that can reduce the cost of animal feed as well as diminish the impact of environmental pollution would drive the market, he said.

However, end user awareness about the benefits of non-antibiotic growth promoters, such as acidifiers and direct-fed microbial, remains low.

Expansion of the feed additives market in Southeast Asia may be slowed down by unfamiliarity with the products and hence a conservative approach may be adopted, Ooi said.

The other stumbling block would be cheap, generic products from competitors, the company said.

However, having sales support to explain the technical and economic benefits of the product would be critical towards fostering a good relationship with customers which would ensure loyalty, said Ooi.